Zimmer Biomet Holdings, Inc. stock research
FY2023 Q1
Zimmer Biomet Holdings (ZBH) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit were higher than the same quarter last year, while cost of revenue increased only slightly, resulting in an improved gross margin. Compared to the prior quarter, revenue was stable, cost of revenue was lower, and gross profit was similar, leading to a higher gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit were higher than the same quarter last year, while cost of revenue increased only slightly, resulting in an improved gross margin. Compared to the prior quarter, revenue was stable, cost of revenue was lower, and gross profit was similar, leading to a higher gross margin.
- The reduction in cost of revenue compared to the prior quarter, alongside stable revenue, was the most notable factor in the gross margin increase.
- Gross margin improved compared to the immediately preceding quarter, as cost of revenue decreased while revenue remained essentially unchanged. Compared to the same quarter one year earlier, gross margin also improved, driven by a larger increase in revenue relative to the increase in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
72.6%
Gross profit
$1.3B
Revenue
$1.8B
Cost of revenue
$500.8M
Quarter-over-quarter change
n/a
Year-over-year change
+2.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $1.8B | $1.3B | $500.8M | 72.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+2.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The reduction in cost of revenue compared to the prior quarter, alongside stable revenue, was the most notable factor in the gross margin increase.
Gross margin improved compared to the immediately preceding quarter, as cost of revenue decreased while revenue remained essentially unchanged. Compared to the same quarter one year earlier, gross margin also improved, driven by a larger increase in revenue relative to the increase in cost of revenue.
Monitor the trend in cost of products sold excluding intangible asset amortization, as it directly affects gross margin.